The decision follows a period in which the Netherlands took control of the company’s Dutch branch due to concerns that valuable technology and components would be transferred to China. This led to a sharp reaction from Beijing.
In response, China halted chip exports from the Chinese Nexperia factory, which directly affected companies dependent on these components. European automakers, in particular, faced uncertainty and disruptions in the supply of electronic parts.
Tensions between the two countries escalated significantly. The Dutch intervention was viewed by China as a hostile move, while The Hague insisted the measure was necessary to mitigate risks to the technology sector. The situation escalated into a political and economic conflict that directly impacted major European companies.
By suspending the measure, the Netherlands is now trying to create space for dialogue. According to multiple reports, China welcomed the Dutch decision as a first step, but Beijing emphasized that a full withdrawal is required before relations can truly recover.
Meanwhile, the Netherlands is attempting to prevent prolonged disruption of chip supplies. The export suspension from China put pressure on automotive supply chains reliant on specific components that are difficult to source elsewhere. The hope is that the Dutch gesture will speed up the resumption of deliveries.
To this end, a Dutch governmental delegation is in Beijing. Multiple sources report that two rounds of talks are taking place between the two countries there. These talks aim to help de-escalate the dispute and prevent the conflict from worsening.
The stakes are clear: The Netherlands wants China to lift the chip export blockade, while China expects the Netherlands to fully reverse its intervention. Both sides appear aware of the potential damage if the conflict persists, both economically and politically.
Although the suspension is seen as a goodwill gesture, the outcome of the talks remains uncertain. The situation remains tense as both countries face pressure: the Netherlands from the business community, and China from its own strategic interests.